Chapter 05: Assignment - Capital Markets, Behavioral Finance, and Technical Analysis Attempts Average / 5 2. Problem 5-02 eBook Problem 5-02 Compute the abnormal rates of return for the following stocks

assuming the following systematic risk measures (betas): B₁ 1.00 1.20 1.25 0.55 -0.25 % Rit = return for stock i during period t Rme-return for the aggregate market during period t B = beta for stock i Use a minus sign to enter negative values, if any. Round your answers to one decimal place. ARe: AR: ART: ARO: ARE: % % Stock B F T с E % Rit 11.1% 10.4 13.5 11.6 16.6 Rmt 4.1% 7.7 5.7 15.2 13.0